The Confederation of Sugar Producers Association has taken moves to consolidate quedan financing of its members under an omnibus line of credit.
CONFED national president Rafael Coscolluela and Negros-Panay chairman Aurelio Valderrama Jr. reported positive prospects with various financial institutions for the availment of quedan financing.
It is needed to finance “C” or reserve sugar stocks when composite prices fall below cost of production during the peak production months, Coscolluela said.
While many member-associations have credit lines for quedan financing, CONFED is seeking to consolidate this under a common facility, he said.
“This financing scheme may be more advantageous for all parties concerned if properly executed,” he added.
Details are, however, still being worked out while SRA’s decision on the proposed “C” allocation is being awaited, Coscolluela said.
National Federation of Sugarcane Planters president Enrique Rojas and Coscolluela for CONFED earlier called on the Sugar Regulatory Administration to immediately allocate a portion of the country’s current sugar supply as “C”, or reserve, because of an upsurge in production and a drop in millgate prices to below P1,300 per Lkg.
SRA Administrator Ma. Regina Bautista Martin said sugar prices and the supply situation will be under observation for two weeks before a decision is made on “C” allocation.*CPG back
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